About Ace Hardware Corp.

Ace Hardware’s history begins in 1924, when four hardware store owners, Richard Hesse, E. Gunnard Lindquist, Franke Burke and Oscar Fisher, joined together to buy merchandise in bulk in order to maximize their profits and compete effectively with larger stores. Over 80 years later, the cooperative has grown to include over 4,600 stores in seven countries, each offering a variety of home improvement merchandise, including Ace’s own exclusive line of products.

Franchise Units

YEAR

U.S.

CANADIAN

INTERNATIONAL

COMPANY OWNED

2013

4,040

0

628

85

2012

4,019

0

605

85

2011

4,093

0

347

0

2010

4,128

0

336

0

2009

4,088

0

345

0

Where Seeking Franchisees: Franchisor is seeking new franchise units worldwide.

Startup Costs, Ongoing Fees and Financing

Total Investment: $750,000 – $1,250,000
Franchise Fee: $5,000
Term of Franchise Agreement: Term of agreement not renewable

FINANCIAL REQUIREMENTS

Net Worth: $400,000
Liquid Cash Available: $250,000

OPERATIONS

22% of all franchisees own more than one unit. Number of employees needed to run franchised unit: 15 – 25. Absentee ownership of franchise is allowed. (80% of current franchisees are owner/operators).

FINANCING TYPE

IN-HOUSE

THIRD PARTY

Franchise Fee

Startup Costs

Equipment

Inventory

Accounts Receivable

Payroll

How This Franchise Supports Franchisees

Training: Available at headquarters: 2 weeks. At franchisee’s location: Ongoing.

Ace Hardware was founded in 1924 by Richard Hesse, E. Gunnard Lindquist, Frank Burke, and Oscar Fisher in Chicago, Illinois. Ace Hardware, incorporated in 1928 as Ace Stores Inc., was founded to provide a centralized purchasing organization to supply the founders’ and members’ stores. The company was named after the ace fighter pilots of World War I, who were able to overcome all odds. Its retail network expanded to hundreds of dealers by 1949, when annual sales reached about $10 million.

After Hesse retired in 1973, Ace was sold to its retailers, becoming a cooperative,[2] and the headquarters moved to suburban Oak Brook. Independent owners became dealer-owners and shareholders in the company. Because it is a co-op and not a franchise, each Ace Hardware store looks different. Ace has placed a focus on Ace stores exhibiting some similar characteristics, such as signaled and core product lines. The Vision 21 program, as this is called, is aimed to make all stores look recognizable as an Ace Hardware.

Ace Hardware’s long-time slogan The helpful hardware place has been replaced by The helpful place. Another change came when[when?] its longtime jingle—”Ace is the place with the helpful hardware man”—was modified with the more gender-neutral “folks” replacing “man”. Much of their advertising since 1987 features John Madden, a former National Football League coach and announcer. In some commercials, he uses football quotes.

Ray Griffith is the President and CEO of Ace Hardware Corporation and has served in that position since taking over for Dave Hodnik in 2005. Hodnik had served as Ace’s leader since 1996. David Ziegler serves as Chairman of the Board. Ace Hardware Corporation now does over $3 billion in hardware sales annually and had $12.5 billion in retail sales during 2007.

In 2010, Tim-Br Mart Group entered into an agreement to acquire licensing rights to the Ace brand name in Canada and appointed Eddie Durocher, as national director of the Ace brand. [8]

The deal included two hardware distribution operations formerly the assets of CanWel Hardware and also provided Tim-Br Marts Ltd. ownership of the ‘Pro’ name plus licensing rights to the ‘Ace’ brand name in Canada. Financing for the transaction was provided by HSBC.